Tariff action could quickly heat up and affect soybeans, economists warn

Soy leaders are keeping a close watch on tariff action out of the White House. China is a major buyer of U.S. soybeans, and economists warn the situation could quickly heat up.

“They dominate the global oil seed market and they import more than the rest of the world combined. And in 2018, when those Section 301 retaliatory tariffs went into place, we saw prices drop overnight by $2.00 a bushel and our market share evaporate. You know, USDA’s Economic Research Service put out a study assessing the economic damages done to us as a result of the trade. It showed $27 billion in losses for U.S. ag, and of that amount, our soybeans accounted for 71%,” said Virginia Houston.

President Trump has given both Canada and Mexico a February 1st start date for tariffs. Some ag leaders have warned the plan could backfire, while others support the move as an effort to boost U.S. trade.

Related Stories
Tyson’s closure reflects deep supply shortages in the U.S. cattle industry, tightening packing capacity, weakening competition, and signaling more volatility ahead for cow-calf producers and feedyards.
The agriculture workforce remains strong and diverse, offering meaningful pathways for students pursuing careers that support the food and farm economy.
Screwworm.gov has targeted resources for a wide range of stakeholders, including livestock producers, veterinarians, animal health officials, wildlife professionals, healthcare providers, pet owners, researchers, drug manufacturers, and the general public.
Richard Gupton of the Agricultural Retailers Association explains a new resource designed to help farmers comply with ESA-related pesticide label requirements.
Sen. Roger Marshall discusses the Senate’s unanimous passage of the Whole Milk for Healthy Kids Act and what expanded milk options could mean for students and dairy farmers. Industry groups say it is a win for student nutrition and dairy producers.
Supplemental Disaster Relief Program Stage Two will disburse around $16 billion, approved by Congress last year. Sign-ups begin Monday, and producers have until April to return applications.

LATEST STORIES BY THIS AUTHOR:

AFBF Economist Danny Munch shares how passing the Whole Milk for Healthy Kids Act could give the dairy industry a needed boost.
Jan and Erin Johnson also join FarmHER + RanchHER host Kirbe Schnoor on this week’s Dirt Diaries podcast to dig in on entrepreneurship, legacy, and letting go.
Texas Cattle Feeders Association Chairman Robby Kirkland explains how the ongoing U.S.-Mexico border closure impacts feed yards that rely on Mexican cattle due to the New World Screwworm.
While the U.S.-China framework for soybean trade is in place, Ohio farmer Chris Gibbs tells us he will believe it when he sees it.
Global nitrogen and phosphate prices remain high despite improved supply fundamentals, with limited Chinese exports and stronger fall applications tightening availability.
The Court may limit emergency tariff powers, complicating a key bargaining tool; ag could see shifts in input costs and export dynamics as China, Brazil, and India talks evolve.